A new law raising the minimum wage for food delivery drivers in New York City hit a speed bump Thursday when the parent companies of Uber Eats, Doordash and other food delivery apps sued the city in state court to put the brakes on the pay raise.
The law, set to go into effect next week, would require companies to pay drivers at least $17.96 per hour or an equivalent rate per delivery.
The food delivery apps are seeking a temporary restraining order to stop that from happening, arguing that the new rate was calculated based on flawed data.
Deliveristas, as they’re called in the city, currently earn about $11 per hour on average, several dollars below the city’s current minimum wage of $15.
Such workers are typically treated as independent contractors, not company employees, so regular minimum wage laws don’t apply to them. The law, passed by New York City Council in 2021, is the first in the nation to set a minimum wage specifically for delivery drivers.
City Comptroller Brad Lander, a primary sponsor of the wage bill, slammed the suit.
“No surprise that Grubhub, DoorDash, and Uber are out to extract every penny they can from the delivery workers whose labor they rely on: that’s the gig business model. They also do not receive benefits for a job that involves navigating New York City traffic —often in inclement weather—climbing apartment stairs and dealing with hangry customers, among other hazards.
“Gig companies have sued New York City repeatedly: to block accessibility...
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